Government paves way for MDR fee on UPI, RuPay debit card payments to big merchants
The Ministry of Finance has authorized banks to impose a Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions and RuPay debit card payments for large merchants with annual turnovers exceeding ₹50 crore. This decision follows concerns raised by the Standing Committee on Finance about the financial sustainability of the UPI ecosystem without MDR. The proposed amendment to the Payment and Settlement Systems Act marks a significant shift in the government's approach to digital payment infrastructure costs.